One of the key tips of blockchain technology is to provide users with unshakable privacy. Bitcoin was the first decentralized cryptocurrency to present itself to a wider audience in need of a virtual currency free of government interference at this time.
Unfortunately, during this time, Bitcoin has shown itself with several weaknesses, including a blockchain that cannot be scaled and changed. All transactions and addresses are written in a blockchain, making it easy for everyone to connect points and open users’ private information based on their existing records. Some government and non-government organizations are already using blockchain analytics to read data on the Bitcoin platform.
Such shortcomings have led developers to look at advanced blockchain technologies for advanced security and speed. One of these projects is Monero, which is generally represented by the XMR ticker.
What is Monero?
Monero is a privacy-centric cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. This technology protects users’ data through secret addresses and Ring signatures.
A hidden address refers to the creation of a single address for a solo transaction. Two addresses cannot be connected to one operation. The received coins go to a completely different address and do not clarify the whole process for the external processor.
The ring signature, on the other hand, refers to the mixing of account keys with public keys, thus creating a “ring” of multiple signatories. This means that the monitoring agent cannot link the signature to a specific account. Unlike cryptography (a mathematical method for securing crypto projects), the ring signature is not a new child in the block. Its foundations were researched and documented in 2001 by the Weizmann Institute and MIT.
Cryptography has undoubtedly won the hearts of many developers and blockchain enthusiasts, but the truth is that it is still a new tool with a handful of uses. Monero distinguished itself as a legitimate project worthy of acceptance because of its use of the already tested Ring signature technology.
Here’s what you need to know before you start trading Monero
The Monero market is similar to other cryptocurrencies. Kraken, Poloniex and Bitfinex are some of the exchanges you will visit if you want to buy. Poloniex was the first to accept it, then Bitfinex and finally Kraken.
This virtual currency seems to be mostly tied against the dollar or other cryptocurrencies. Some of the available pairs include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and more. The trading volume and liquidity of this currency are very good statistics.
One of the good things about XMR is that anyone can participate in the mine, either individually or by joining a mining pool. Any computer with significantly better performance can remove Monero blocks with a few sobs. Don’t worry about ASICS (application-specific integration schemes), which are currently mandatory for Bitcoin mining.
Although it is a huge cryptocurrency network, it is not so special when it comes to volatility. Virtually all altcoins are extremely volatile. This should not worry any enthusiastic trader, because this factor makes them profitable in the first place – you buy when prices are at the bottom and you sell when there is an upward trend.
In January 2015, XMR went for $ 0.25, then ran up to $ 60 in May 2017 and is now bowling above $ 300. The Monero coin, along with other cryptocurrencies, hit ATH (all-time high) on Jan. 7 before falling to the $ 300 level. At the time of this writing, almost all decentralized currencies are in the process of price correction, and Bitcoin is in the $ 10,000- $ 11,000 range from the magnificent $ 19,000 ATH.
Stickiness and adoption
Thanks to its ability to offer reliable privacy, XMR has been accepted by many people who can easily exchange their coins for other currencies. Simply put, Monero can easily be sold for something else.
All Bitcoins in the Bitcoin Blockchain are recorded, and therefore in the event of an event such as theft, each coin will refrain from making them unchangeable. With Monero, you can’t tell one coin from another. Therefore, no seller can reject any one because it is related to a bad event.
The Monero blockchain is currently one of the most trending cryptocurrencies with a large following. Like most blockchain projects, the future looks great despite pressure from the impending government. As an investor, you need to do the necessary research and study before trading in any cryptocurrency. Whenever possible you should have all four of these components in place for launch to maximize profits.